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This paper explores the carbon footprint of milk produced by dairy cows in Australia and follows the common carbon footprint approach guidelines of the International Dairy Federation and the International Standard for Life Cycle Assessment. Primary data were collected and analysed from 139 farms representing the main dairy regions in Australia. The scope of the study covers all inputs and outputs from cradle to farm gate for the twelve month period from July 2009 to June 2010 (2009/2010). The carbon footprint of average Australian milk for 2009/2010 was calculated to be 1.11 kg carbon dioxide equivalents kg−1 fat and protein corrected milk. Differences in GHG emission per kg of milk produced could be traced back to differences in production practices. The feed conversion efficiency was identified as the most important driver for the reduction of enteric methane emissions. Reduction potentials were also identified for manure management practices.